Stocks were supported by strong sales gains by the main U.S. automakers and a rise in November factory orders. But the tone was cautious as jitters surrounding Europe's debt crisis resurfaced.

"We had a bit of economic news today, but I think it has more to do with European banks possibly needing more capital and general debt concerns in the eurozone," said Anthony Conroy, head trader at BNY ConvergEx Group.

Shares of Italy's UniCredit plunged on the Milan stock exchange after the bank announced a €7.5 billion offering of new shares. The offering drew lackluster demand despite a steep discount, according to local media reports.

European banks are facing new capital requirements this year and conditions in the wholesale funding market remain chilly.

The European Central Bank recently pumped nearly €500 billion into the banking sector, but much of that money appears to have been redeposited at the central bank. Banks have stashed a record €453.2 billion at the ECB's deposit facility, according to data published Wednesday.

Ford (F, Fortune 500) shares rose after the automaker said sales rose 11% in December and were up 10% in 2011. Shares of crosstown rival GM (GM, Fortune 500) edged higher after it reported a sales increase of 4.5% in December and 13% for the year.

Caterpillar (CAT, Fortune 500) shares fell after the construction equipment manufacturer announced it will expand its research and development center in Wuxi, China.

Dunkin' Brands (DNKN) shares climbed after the company announced it plans to double the number of its Dunkin' Donuts restaurants in the United States in the next 20 years. The chain currently operates about 7,000 restaurants nationwide.

Cabot Oil & Gas (COG)announced a 2-for-1 stock split, after its stock rallied 105% over the last year. The company also plans to increase its quarterly dividend 33%.

Economy: The Census Bureau said factory orders rose 1.8% in November, following a 0.2% decrease the month before. Analysts surveyed by Briefing.com were expecting an increase of 2.1%.